Core Insights - Oak Valley Community Bank has been recognized as one of the 2026 Best Places to Work in the Central Valley, based on employee feedback and independent evaluation by Best Companies Group [1][2] - The bank was also acknowledged by Opportunity Stanislaus for "Growing the Economy" by increasing its workforce by 10% or more throughout 2025 [1] Company Overview - Oak Valley Community Bank is a wholly-owned subsidiary of Oak Valley Bancorp, offering a full range of loan and deposit services to individuals and small businesses [5] - The bank operates through 19 branches located in various cities including Oakdale, Turlock, Stockton, and others [5] Recognition Program - The Best Places to Work: Central Valley program highlights organizations that create exceptional workplace experiences and strong employee engagement, using a data-driven process that includes employer evaluation and confidential employee feedback [3] - Final rankings are determined through third-party analysis to ensure a fair assessment [3] Economic Development - Opportunity Stanislaus is a regional economic development organization focused on enhancing the economic vitality of Stanislaus County by supporting business growth and investment [4]

Banking Operations and Services - As of December 31, 2025, the Bank maintained 19 full-service branch offices across California, with plans for further expansion based on demand and resources[23] - Approximately 99% of the Bank's loans and 90% of its deposits are generated from the Central Valley, which has a total population of over 5 million[25] - The Bank emphasizes SBA lending services, particularly for minority-owned businesses, within its market area in the California Central Valley and Eastern Sierra[47] - The Bank's consumer loan portfolio includes personal loans, auto loans, and home mortgages, aimed at diversifying its product line[48] - The company offers several types of Certificates of Deposit (CDs) with a maximum maturity of five years, with the majority having a maturity of one to twelve months[50] - The company competes primarily with major banks such as Wells Fargo, Bank of America, and JP Morgan Chase in its service area[60] - The company emphasizes personalized client service to meet the banking needs of consumers, professionals, and businesses in the community[58] Loan Portfolio and Risk Management - As of December 31, 2025, consumer and commercial real estate loans constituted 91% of the Bank's loan portfolio, with 97% being commercial real estate loans[32] - The aggregate loan-to-value ratio of the entire commercial real estate portfolio was 44.9% as of December 31, 2025, indicating strong collateralization[41] - Non-owner occupied commercial real estate comprised 69.9% of the Bank's total commercial real estate commitments, with a loan-to-value ratio of 45.6%[41] - The Bank employs strict underwriting practices to mitigate risks in its loan portfolio, including joint approval systems and external independent credit reviews[46] - Approximately 91% of the company's loan portfolio held for investment as of December 31, 2025, consisted of real estate-related loans[67] - The company maintains an allowance for credit losses, which may prove insufficient if actual losses exceed estimates, potentially impacting financial condition and profitability[158] - Commercial real estate loans involve higher principal amounts and repayment is dependent on factors outside the company's control, increasing credit risk[161] Financial Condition and Capital Management - The Bank's primary capital plus allowance for credit losses totaled $236.0 million as of December 31, 2025, allowing for legal lending limits of $35.4 million for unsecured loans[30] - The company had total deposits of approximately $1.7 billion, representing about 1.9% of the total deposits in its primary service area of approximately $90.8 billion[62] - The company has a borrowing limit of approximately $402 million with the Federal Home Loan Bank (FHLB) as of December 31, 2025[54] - The holding company primarily depends on dividends from the Bank for income, which could be limited if capital raising is restricted[182] - The company may need to seek additional capital in the future, but market conditions could affect availability[183] Regulatory Environment and Compliance - The Company is subject to significant regulation and restrictions by federal and state laws, primarily for the protection of depositors and the stability of the U.S. banking system[80] - The Dodd-Frank Act mandates higher capital and liquidity requirements, including a minimum common equity Tier 1 ratio of 4.5% of risk-weighted assets and a minimum Tier 1 risk-based capital requirement of 6.0%[94] - The Community Reinvestment Act requires banks to meet the credit needs of their communities, with penalties for inadequate service[81] - The Company must adhere to safety and soundness requirements, including operational and management standards[81] - The Company is subject to extensive anti-money laundering regulations, including the USA Patriot Act, which mandates enhanced due diligence for high-risk customers[110] - The company is subject to various consumer protection laws, including the Truth-In-Lending Act and the Equal Credit Opportunity Act, which govern credit disclosures and prohibit discrimination in lending[127][128] - Increased regulatory supervision and compliance costs due to the Dodd-Frank Act are expected to adversely affect the Company's business operations and financial condition[201] Economic and Market Conditions - Economic conditions, including interest rate differentials, significantly influence the company's profitability and are subject to factors beyond its control[70] - A deterioration in economic conditions could lead to increased loan delinquencies and a decline in net interest income, impacting overall profitability[146] - Inflation and higher interest rates have led to a decline in the trading value of government securities, posing risks to the company's financial condition[150] - Recent bank failures have led to significant market volatility and decreased confidence in the U.S. banking system, with potential deposit outflows as customers seek to maximize FDIC insurance[152] - Economic conditions in the primary market areas, particularly in the Central Valley and Eastern Sierras, could adversely affect the company's financial condition and earnings[145] Operational Risks and Challenges - The company faces significant operational risks, including fraud, data processing errors, and technology breaches, which could lead to substantial losses[173] - The effectiveness of the enterprise risk management framework is questioned, with potential for unexpected losses if it fails to adapt to market changes[174] - Liquidity risk is highlighted, with concerns that inability to raise funds could negatively impact financial condition[177] - The company relies on external vendors for essential services, exposing operations to risks if vendors fail to meet contractual obligations[181] - Cybersecurity threats are a significant concern, with potential impacts on customer trust and operational integrity if breaches occur[186] Future Outlook and Strategic Initiatives - The company intends to improve and develop its Internet banking products and delivery channels as resources permit[55] - The company intends to pursue an organic growth strategy and may engage in selected acquisitions, although there are risks associated with managing such growth effectively[141][142] - The company is exploring new lines of business and products, which may involve substantial risks and uncertainties, potentially affecting operating results[168] - The SEC adopted new rules requiring public companies to disclose material impacts of climate-related risks, which may affect the company's reporting obligations[135][136] - Climate change poses risks that could disrupt operations and affect client relationships, necessitating integration of climate risk into management strategies[185]

Core Insights - Oak Valley Community Bank has appointed Nathan Dellinger as Senior Vice President, Credit Administrator, to enhance credit administration and support lending practices [1][2]. Group 1: Appointment Details - Nathan Dellinger has over 20 years of banking experience, previously serving as Senior Vice President, Credit Administrator at a regional financial institution [2]. - Dellinger is expected to oversee credit quality, structure complex loan transactions, and strengthen credit administration processes at Oak Valley Community Bank [2]. Group 2: Leadership Perspective - Mike Rodrigues, Executive Vice President and Chief Credit Officer, highlighted Dellinger's extensive credit leadership experience and sound judgment as valuable assets for the bank's growth and credit culture [3]. Group 3: Educational Background - Dellinger holds a Bachelor of Science in Business Administration from the University of the Pacific and an MBA from the University of California, Davis [3]. - He is also a graduate of the School of Banking Executive Program at the University of Colorado, Boulder [3]. Group 4: Community Involvement - Dellinger is a lifelong resident of Central Valley and a United States Marine veteran, actively participating in community activities [4]. Group 5: Company Overview - Oak Valley Bancorp operates Oak Valley Community Bank and Eastern Sierra Community Bank, offering various loan and deposit products through 19 branches across multiple locations [5].

Core Insights - Oak Valley Community Bank has appointed Pete Centeno as Vice President and Branch Manager of its Ripon Branch, aiming to enhance branch operations and client relationships while driving growth in the local market [1][3]. Company Overview - Oak Valley Bancorp operates Oak Valley Community Bank and its Eastern Sierra Community Bank division, providing a range of loan and deposit products to individuals and small businesses [3]. - The bank currently has 19 branches located in various cities including Oakdale, Turlock, Stockton, and others, facilitating convenient access for clients [3]. Leadership and Experience - Pete Centeno brings over 20 years of banking experience, having previously served as Vice President and Branch Manager at a large national financial institution, where he led a high-performing team and achieved operational excellence [2]. - Centeno holds a bachelor's degree in business administration with a focus on Human Resources from Fresno Pacific University [2]. Community Commitment - The bank emphasizes a commitment to relationship banking, with Centeno's leadership expected to positively impact clients and the Ripon community [3].

Core Viewpoint - Oak Valley Bancorp reported a mixed performance for the fourth quarter of 2025, with a slight increase in net income year-over-year but a decline in full-year earnings compared to 2024, alongside improvements in net interest income and non-interest income [1][2][4]. Financial Performance - For Q4 2025, Oak Valley Bancorp's net income was $6.3 million, or 76 cents per share, up from $6 million, or 73 cents per share, in Q4 2024, reflecting a 4.1% year-over-year increase [1][2]. - Full-year 2025 net income totaled $23.9 million, or $2.88 per share, down from $25 million, or $3.02 per share, in 2024 [2]. - Total net interest income for Q4 reached $19.5 million, a 9% increase year-over-year, while annual net interest income rose 6.5% to $74.6 million [2]. Key Business Metrics - The net interest margin (NIM) for Q4 was 4.14%, up from 4.00% in the same quarter last year, attributed to higher loan yields and reduced funding costs [3]. - Non-interest income increased to $1.8 million in Q4, a 27.6% rise from $1.4 million a year earlier, driven by higher investment advisory fees and service charges [4]. Expense Management - Non-interest expenses grew 6.2% year-over-year to $12.3 million in Q4, with annual non-interest expenses climbing 9.3% to $50.3 million due to higher staffing costs and operational expenses [5]. Operational Efficiency - The efficiency ratio improved to 55.9% in Q4 from 58.1% a year ago, indicating better operational leverage, while the full-year efficiency ratio slightly increased to 59.7% from 58.2% [7]. - Return on average assets for Q4 was 1.3%, consistent with the previous year, while full-year return on assets decreased to 1.2% from 1.4% [7]. Credit Quality - A provision for credit losses of $0.9 million in Q4 was linked to a commercial real estate loan placed on non-accrual status, resulting in non-performing assets rising to $4.6 million, or 0.2% of total assets [8]. - The allowance for credit losses as a percentage of gross loans increased to 1.1% from 1% in Q4 2024, indicating stable overall credit quality [9]. Shareholder Returns - The board declared a cash dividend of 37.5 cents per share, payable on February 13, 2026, marking the first dividend payment of 2026, with an annual dividend for 2025 of 60 cents per share, up from 45 cents in 2024 [10]. Company Growth - Oak Valley Bancorp surpassed $2 billion in total assets, attributed to consistent growth and strong client relationships, while maintaining 19 banking offices across Central California and the Eastern Sierra region [6][11].

Core Viewpoint - Oak Valley Bancorp's CEO Christopher M. Courtney will retire on June 30, 2026, after a long tenure, with Richard A. McCarty set to succeed him as President and CEO [1][5]. Group 1: Leadership Transition - Christopher M. Courtney has been with Oak Valley Community Bank since 1996, serving in various executive roles before becoming CEO in 2013 [2]. - Under Courtney's leadership, the bank expanded from a two-branch institution with $45 million in assets to a full-service bank with over $2 billion in assets across 19 branches [3]. - Richard A. McCarty, the current President and COO, will take over as President and CEO upon Courtney's retirement, having been with the bank for over 26 years [5]. Group 2: Contributions and Achievements - Courtney established strong standards for credit quality, service, community engagement, employee support, and long-term sustainability during his tenure [3]. - Board Chair Daniel J. Leonard acknowledged Courtney's commitment to client service, employee development, and community investment, emphasizing the strength of the executive team he built [4]. Group 3: Company Overview - Oak Valley Bancorp operates Oak Valley Community Bank and Eastern Sierra Community Bank, offering various loan and deposit products to individuals and small- to medium-sized businesses [6]. - The bank currently operates through 19 branches located in various cities, including Oakdale, Turlock, Stockton, and several others in the Eastern Sierra division [6].

Financial Performance - Consolidated net income for Q4 2025 was $6,335,000, or $0.76 per diluted share, a decrease of 4.1% from $24,948,000, or $3.02 EPS for the year 2024[3] - Net income for Q4 2025 was $6,335,000, down from $6,008,000 in Q4 2024, indicating a decrease of 11.2% year-over-year[18] - Earnings per share (diluted) for Q4 2025 was $0.76, compared to $0.73 in Q4 2024, showing an increase of 4.1%[18] Income and Expenses - Net interest income for Q4 2025 was $19,457,000, an increase from $19,197,000 in the prior quarter, driven by a growth of $38.3 million in average earning assets[5] - Non-interest income for Q4 2025 was $1,825,000, compared to $1,973,000 in the prior quarter, primarily due to prior quarter death benefits from bank-owned life insurance[7] - Non-interest expense for Q4 2025 totaled $12,262,000, a decrease from $12,700,000 in the prior quarter, attributed to year-end accrual adjustments[8] Assets and Loans - Total assets reached $2.02 billion as of December 31, 2025, an increase of $122.5 million compared to December 31, 2024[9] - Gross loans amounted to $1.14 billion, reflecting an increase of $31.1 million from the prior quarter and $37.4 million year-over-year[9] - Total assets at the end of Q4 2025 reached $2,023,116,000, up from $1,900,604,000 at the end of Q4 2024, marking an increase of 6.5%[20] - Gross loans increased to $1,143,930,000 in Q4 2025 from $1,106,535,000 in Q4 2024, representing a growth of 3.4%[20] Asset Quality - Non-performing assets were $4.6 million, or 0.23% of total assets, due to one collateral-dependent loan placed on non-accrual status[10] - The allowance for credit losses as a percentage of gross loans increased to 1.08% at December 31, 2025, from 1.03% at September 30, 2025[10] Shareholder Returns - The company declared a cash dividend of $0.375 per share, totaling approximately $3,145,600, to be paid on February 13, 2026[11] Efficiency and Returns - The efficiency ratio for Q4 2025 improved to 55.94%, down from 58.09% in Q4 2024, indicating enhanced operational efficiency[18] - The return on average common equity for Q4 2025 was 12.32%, compared to 12.86% in Q4 2024, showing a slight decline[18] Stock Performance - The stock price at the end of Q4 2025 was $30.06, up from $29.25 at the end of Q4 2024, indicating a year-over-year increase of 2.8%[20] Cost of Funds - The average cost of funds stabilized at 0.76% in 2025, compared to 0.78% in 2024[5] Year-over-Year Comparisons - Net interest income for Q4 2025 was $19,457,000, an increase from $17,846,000 in Q4 2024, representing a growth of 9.0% year-over-year[18] - Non-interest income in Q4 2025 was $1,825,000, compared to $1,430,000 in Q4 2024, reflecting a year-over-year increase of 27.6%[18] - The book value per share increased to $24.79 in Q4 2025 from $21.95 in Q4 2024, reflecting a growth of 12.8%[20]

Core Insights - Oak Valley Community Bank has appointed Carlos Chavez as Vice President and Branch Manager of the Stockton Branch, where he will focus on branch operations, client relationships, and growth initiatives [1][4] Company Overview - Oak Valley Bancorp operates Oak Valley Community Bank and Eastern Sierra Community Bank, providing a range of loan and deposit products to individuals and small businesses [4] - The bank has 19 branches located in various cities including Oakdale, Turlock, Stockton, and others [4] Leadership Background - Carlos Chavez brings over 21 years of banking experience, previously serving as Vice President and Branch Manager at a large national bank, with a strong record in operational leadership and sales performance [2] - He has been recognized as a President's Club recipient and has consistently achieved top performer honors [2] Community Involvement - Chavez is a long-time resident of Stockton with strong community ties, actively involved in organizations such as the San Joaquin Hispanic Chamber of Commerce and Stockton Rotary [3] - He advocates for financial literacy and engages in youth coaching and outdoor activities [3] Executive Statement - Julie DeHart, Executive Vice President of Retail Banking Group, expressed confidence in Chavez's leadership and community commitment, aligning with Oak Valley's values [4]

Core Viewpoint - Oak Valley Bancorp has announced the promotions of Bill Nunes to Executive Vice President, Chief Marketing Officer, and Jose Sabala to Senior Vice President, Community Reinvestment Act (CRA) Officer, highlighting the company's commitment to enhancing its marketing strategies and community engagement initiatives [1]. Group 1: Promotions and Roles - Bill Nunes has been promoted to Executive Vice President, Chief Marketing Officer, after joining the bank in 2005 and serving as Senior Vice President, Marketing Manager [2]. - Jose Sabala has been promoted to Senior Vice President, CRA Officer, having joined the bank in 2018 and significantly enhancing the CRA program through expanded outreach and strategic community partnerships [4]. Group 2: Contributions and Impact - Nunes has played a crucial role in developing and executing the bank's marketing and brand strategy, which includes advertising, communications, public relations, and strategic partnerships [2]. - Sabala oversees CRA compliance and execution, ensuring alignment with regulatory expectations and the bank's mission to serve and strengthen communities, supporting economic development and improving access to credit for low- and moderate-income individuals and businesses [4]. Group 3: Leadership and Community Involvement - Nunes is recognized as a strategic thinker with a deep understanding of markets and community needs, serving on the board of Second Harvest of the Greater Valley and the Gallo Center for the Arts [3]. - Sabala is actively involved in local organizations, serving as Board Vice President of City Ministry Network and Board Chair of Access Plus Capital, among other roles, demonstrating his commitment to community relationships [5]. Group 4: Company Overview - Oak Valley Bancorp operates Oak Valley Community Bank and its Eastern Sierra Community Bank division, offering a variety of loan and deposit products through 19 branches located in various cities [6].

Core Insights - Oak Valley Community Bank has appointed Dan Greene as Vice President and Branch Manager of the Tracy branch, succeeding John Capri who is retiring in January [1][2][3] - Greene brings nearly 30 years of banking experience and a strong community connection, having lived in Tracy for over two decades [2] - The bank operates 19 branches across various locations, offering a range of loan and deposit products to individuals and small businesses [3] Company Overview - Oak Valley Community Bank is a wholly-owned subsidiary of Oak Valley Bancorp, listed on NASDAQ as OVLY [1] - The bank focuses on operational strategy, client relationship management, and community presence [1][3] - The bank's branches are located in cities including Oakdale, Turlock, Stockton, and several others, including a division in the Eastern Sierra [3]